Summary
Intel Corporation reported record revenue of $77.9 billion for the fiscal year ended December 26, 2020, marking its fifth consecutive year of growth. The company experienced strong demand in its PC-centric business, driven by work-from-home trends, and saw growth in its data-centric businesses, particularly within cloud service providers and the communications sector. However, a higher mix of 10nm products impacted gross margins, and the company faced macroeconomic weakness in the enterprise and government segments. Intel continued to invest heavily in R&D ($13.6 billion) and announced a strategic divestiture of its NAND memory business to SK hynix Inc. The company also returned significant capital to stockholders through dividends and share repurchases, totaling $19.8 billion.
Financial Highlights
55 data points| Revenue | $77.87B |
| Cost of Revenue | $34.26B |
| Gross Profit | $43.61B |
| R&D Expenses | $13.56B |
| SG&A Expenses | $6.18B |
| Operating Expenses | $19.93B |
| Operating Income | $23.68B |
| Interest Expense | $629.00M |
| Net Income | $20.90B |
| EPS (Basic) | $4.98 |
| EPS (Diluted) | $4.94 |
| Shares Outstanding (Basic) | 4.20B |
| Shares Outstanding (Diluted) | 4.23B |
Key Highlights
- 1Record revenue of $77.9 billion, up 8% year-over-year, driven by strong PC demand and data-centric growth.
- 2Data-centric businesses grew 9%, approaching 50% of total revenue, with particular strength in cloud service providers and communications.
- 3PC-centric business grew 8%, benefiting from increased PC usage for remote work and learning.
- 4Gross margin declined by 3 percentage points due to a higher mix of 10nm products and lower margin adjacent businesses.
- 5Significant investments in R&D ($13.6 billion) and capital expenditures ($14.3 billion) continued, with a focus on future process technology.
- 6Agreement to divest the NAND memory business to SK hynix Inc. for $9.0 billion.
- 7Returned $19.8 billion to stockholders through dividends ($5.6 billion) and share repurchases ($14.2 billion).